COMMERCIAL property owners in Sheffield are missing out on hundreds of millions of pounds of tax returns which they could claim back through making use of their tax allowances, according to an accountancy firm.
Portal Tax Claims, a specialist capital allowance tax returns claims company, believes 12,835 property owners in Sheffield could be missing out on more than £539 million annually.
The company aims to help businesses claim back tax by utilising their ‘capital allowances’, which are allowances available to commercial property owners who spend money making certain qualifying improvements to their property, such as installing fire alarm systems and air conditioning.
During a trial of the new proposition it reclaimed, on average, £105,000 for each business in outstanding capital allowances.
Shaun Murphy, chief executive of Portal Tax Claims, said: “Literally billions of pounds are due to commercial property owners across the UK, but most lack the necessary expertise to make the claim which can be a complicated process.”
Capital allowances are available when money is spent buying or improving a property. HMRC allows the owner to offset some of that expenditure against profits or general income for tax purposes.
Portal Tax Claims say that if a company owns commercial property, either freehold or on a lease of 30 years or more, there is an estimated 96 per cent chance they qualify for a substantial income tax or corporation tax refund.
It believes an estimated two million properties around the UK qualify, which must be classified as commercial, not held in a pension fund, and bought for at least £200,000.